Published on February 25, 2014
CALIFORNIA INSTITUTE OF TECHNOLOGY Decentralized Energy Paradigms International Energy Systems Integration Workshop PNNL-NREL Paul De Martini 02.19.14 email@example.com www.newportcg.com
Bi-directional: 2007-2020 Growth in customer and merchant DER leads to inadvertent and planned bi-directional power flows driving circuit design changes, new grid components and control systems 2 2
Operational Evolution: 1978-2001 Transactive Energy: 2020+ DER at scale will likely lead to multi-party transactions and the creation of local balancing & distributed markets to integrate customer DER 3 3
Responsive Distributed Energy Resource Values 4
Multiple DER Constituents Market & control systems must be able to reconcile multi-party objectives & constraints related to the same distributed resource Objectives & Goals Decision Criteria & Processes Constraints Bulk Power System Energy Financial Services Distribution Operations Customer Energy Provider Energy Device Firms Energy Related Services Value Perception Economic Value Willingness & Ability 5
Evolving Energy Ecosystem Convergence of Four Key Networks 6
Challenges for Distributed Energy at Scale Failure to address properly will reduce stability for both distribution and bulk power Spatial & Time Coordination Redefine Roles and Interaction between Transmission and Distribution Operations Redefine integration and coordination of controls and protection Reassess “Market” Structures to ensure alignment of economic signals with system operations (broad use of term not just ISOs, but also bilateral and tariffs) Economic & Robustness Optimization Full system trade-off analysis Complexity vs. Simplicity Risk Based Methods Coordination Needed Bet. Bulk Power, Distribution & Customers Policy & Regulation Infrastructure Planning & Investment Information Exchange 7
Spatial & Temporal Coordination Current policy, markets and operational trends are converging spatial and time dimensions more fully - while at the same time more tightly coupling across each dimension. Regional State LSE Distribution Requires: • • • • • Planning Alignment Engineering/Design Alignment Operational Alignment Control Alignment Protection Alignment Customer 8
Economic & Robustness Optimization There is a fundamental trade-off between economic efficiency and robustness – we’re now also trying to resolve this system problem in a larger spatial and time context. Economic Optimization High What are the range of options? And what is an acceptable set of solutions? Low Low Operational Robustness High 9
Coordination Across Domains We are quickly reaching the limits of our ability to assume away the difficult issues. And, smoothing issues thru large numbers no longer masks the underlying problems Policy & Regulation Energy Policy & Operational Reality – Systems View Coordination bet FERC & State/Local Jurisdictions NERC Reliability and Distribution (State/Local) Roles Infrastructure Planning & Investment Redefine Integrated Resource Planning to more completely incorporate distribution and customer DER Expand transmission planning to incorporate local distribution considerations Adapt analogous transmission planning methods to local area distribution planning Information Exchange Planning information (Engineering, Benefit-Cost, Regulatory) “Market” Information (Pricing & Settlement) Operational Information (Situational Awareness, Decision Support & Control Feedback) 10
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